Medicare Update: U.S. Announces Lower Prices For 10 Prescription Drugs
The U.S. Department of Health and Human Services (HHS) has reached agreements with participating manufacturers on new lower drug prices for the first 10 drugs selected for the Medicare drug price negotiation program.
After manufacturers have steadily increased the list prices of all 10 of these drugs since they went on the market, these negotiated prices will cut the list price between 38 and 79 percent. The new prices will go into effect for people with Medicare Part D prescription drug coverage in 2026:
| Drug Name | Commonly Treated Conditions | 2023 Drug List Price for 30-Day Supply | 2026 Negotiated Price for 30-Day Supply | Savings |
|---|---|---|---|---|
| Eliquis | Prevention and treatment of blood clots | $521 | $231 | $290 (-56%) |
| Jardiance | Diabetes; heart failure | $573 | $197 | $376 (-66%) |
| Xarelto | Prevention and treatment of blood clots; reduction of risk for patients with coronary or peripheral artery disease |
$517 | $197 | $320 (-62%) |
| Januvia | Diabetes | $527 | $113 | $414 (-79%) |
| Farxiga | Diabetes; heart failure; chronic kidney disease |
$556 | $178.50 | $377.50 (-68%) |
| Entresto | Heart failure | $628 | $295 | $333 (-53%) |
| Enbrel | Rheumatoid arthritis; psoriasis; psoriatic arthritis | $7,106 | $2,355 | $4,741 (-67%) |
| Imbruvica | Blood cancers | $14,934 | $9,319 | $5,615 (-38%0 |
| Stelara | Psoriasis; psoriatic arthritis; Crohn’s disease; ulcerative colitis | $13,836 | $4,695 | $9,141 (-66%) |
| Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill |
Diabetes | $495 | $119 | $376 (-76%) |
These 10 drugs are among those with highest total spending in Medicare Part D. If the negotiated prices had been in effect during 2023, Medicare would have saved an estimated $6 billion. When the negotiated prices go into effect in 2026, people enrolled in Medicare Part D are estimated to save $1.5 billion in out-of-pocket costs.
Millions of Part D enrollees that depend on these medications to treat life-threatening conditions including diabetes, heart failure and cancer are also expected to see lower out-of-pocket costs. For example, a Medicare enrollee who takes Stelara for arthritis and pays $3,459 for a 30-day supply would pay only $1,174 in 2026.
Many seniors and people with disabilities on Medicare who take these drugs will also benefit from the Inflation Reduction Act’s $2,000 cap on out-of-pocket spending, which will be fully in effect in 2025. This measure will save 19 million beneficiaries an average of $400 per year, in addition to savings from the negotiated drug prices.
More drugs will be selected each year as part of Medicare’s drug price negotiation program. Medicare will select up to 15 additional drugs covered under Part D for negotiation in 2025, up to an additional 15 Part B and D drugs in 2026, and up to 20 drugs every year after that.
View additional details about the Medicare Drug Price Negotiation Program.
Pacific Federal is a Zenith American company and subsidiary of Harbour Benefit Holdings, Inc.
